veryone is not rich？〃 I asked。
Rich dad smiled。 〃Because people do not know the difference
between an asset and a liability。〃
I remember asking； 〃How could adults be so silly。 If it is that simple； if it is that important； why would everyone not want to find out？〃
It took our rich dad only a few minutes to explain what assets and liabilities were。
As an adult； I have difficulty explaining it to other adults。 Why？ Because adults are smarter。 In most cases； the simplicity of the idea escapes most adults because they have been educated differently。 They have been educated by other educated professionals； such as bankers； accountants； real estate agents； financial planners； and so forth。 The difficulty es in asking adults to unlearn； or bee children again。 An intelligent adult often feels it is demeaning to pay attention to simplistic definitions。
Rich dad believed in the KISS principle…〃Keep It Simple Stupid〃…so he kept it simple for two young boys； and that made the financial foundation strong。
So what causes the confusion？ Or how could something so simple be so screwed up？ Why would someone buy an asset that was really a liability。 The answer is found in basic education。
We focus on the word 〃literacy〃 and not 〃financial literacy。〃 What defines something to be an asset； or something to be a liability are not words。 In fact； if you really want to be confused； look up the words 〃asset〃 and 〃liability〃 in the dictionary。 I k